- Gold is on track to end the year with double-digit gains.
- Fed’s dovish actions powered gains in the yellow metal.
Gold looks set to post double-digit yearly gains, having hit six-year highs in September.
The yellow metal is currently trading at $1,478 per Oz, representing a 15 percent gain on a year-to-date basis.
That is the biggest yearly rise since 2010 when prices had rallied by 29.6 percent. Also, the metal had risen by 13.21 percent in 2017.
Gains powered by dovish Fed
Gold has put on a good show this year primarily due to Federal Reserve’s actions. The central bank took a dovish u-turn in the first quarter and delivered three rate cuts in the second half.
Also, the central bank has expanded its balance sheet by over $300 billion in the last three months. Expansionary monetary policy usually bodes well for gold, a zero-yielding safe haven.
Also, the US-China trade war and the recession fears added to the bullish tone.
Looking forward
Some experts believe gold will likely have a tough time next year, as the Fed has paused rate cuts and with elections in November, there is a strong incentive for President Trump to de-escalate trade tensions.
Technical levels
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